Bucharest, 4th of July, 2014 – The Advisers/Knight Frank, market leader on the office segment, announced a market share of 83% of the total area of office spaces that has been pre-leased in the last 4 years on the local market through agencies, within the 21st edition of the Annual Conference (ERES 2014).
”Pre-leases hold a special importance on the office market and are considerably more difficult to obtain, as compared to other transactions. They allow the developers to obtain financing and to start the construction, provided that a company commits to moving into a location which exists only as a plan at the decision moment. As for the ERES Annual Conference, we are honoured to have supported it. It is a unique oportunity for the local sector to present our market and its evolution. We spontaneously joined the organisers because we truly believe this emergent industry in which we operate needs a sound theoretical and research basis and a well-developed methodology. Furthermore, the exchange of ideas and best practices between international professionals has always been encouraged by us”, stated Horatiu Florescu, CEO The Advisers/Knight Frank.
Highlights of the panel discussion hosted by The Advisers/Knight Frank within the ERES conference:
Between 2010-2013, 19% of the total transacted area on the office market in Bucharest were represented by pre-leases.
The biggest pre-lease on the local market was signed by the Oracle company for the office building Floreasca Park, (25.000 sq m). The project was developed by Portland Trust, transaction brokered by The Advisers/Knight Frank in 2012.
West-Center and Calea Floreasca – Barbu Vacarescu areas attracted over 61% of the number of pre-lease contracts signed between 2010-2013.
As for the profile of the companies which signed pre-leases, cca 45% of them are from IT&C sector, and 12% belong to the banking area.
Buildings that benefited from pre-leases include Bucharest Business Park in 2004, The Lakeview in 2007, Unicredit Tower in 2010, AFI Park I, Floreasca Park and Green Gate in 2012 and AFI Park II in 2013.
In the past 4 years, over 83% of the total surface pre-leased was the object of consultancy of The Advisers/Knight Frank (surface preleased through agencies).
Between 2010-2013, the agency signed 18 pre-leases contracts (from a total of 22 transactions signed by agencies and 26 on the whole market), with a total surface of 65,000 sqm.
The Advisers/Knight Frank’s portfolio of pre-leases include transactions in the most important office building projects recently delivered in Romania, such as: Floreasca Park, developed by Portland Trust (37,500 sq. m), delivered with a pre-lease percentage of 80% to tenants like Oracle (25,000 sq m), BASF and URSUS/SAB Miller; the office buildings AFI Park 1 & 2 developed by AFI Europe (last year, AFI Park 2, with a leasable area of 12,000 sq m was fully pre-leased by Electronic Arts); Green Gate with a total area of 31,000 sq m having as anchor tenant TeamNet International (12,000 sq m).
